Crypto Overview in Italy

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Italy legally recognizes cryptocurrencies as “cripto-attività” (crypto-assets) under national law. Ownership and trading of assets such as Bitcoin and Ethereum are fully legal; they are not legal tender. The Budget Law 2023 (Legge 197/2022) formally classified crypto-assets as a distinct category subject to a dedicated tax regime, treating them as financial instruments rather than foreign currencies.

Italy adopted MiCA Regulation (EU) 2023/1114 into domestic law through Legislative Decree No. 129/2024, published in the Italian Official Gazette on 13 September 2024 and in force from 14 September 2024. MiCA became fully applicable in Italy from 30 December 2024, bringing crypto-asset issuers and service providers under a comprehensive EU-harmonized framework covering investor protection, market integrity, and financial stability.

Crypto-to-crypto exchanges are generally not taxable events under Italian law, which provides some flexibility for portfolio rebalancing. Using cryptocurrency to purchase goods or services, or converting to fiat currency, does constitute a taxable disposal.

Tax Treatment

Cryptocurrency taxation is administered by the Agenzia delle Entrate. Capital gains from crypto disposals were subject to a 26% substitute tax through fiscal year 2024, with a EUR 2,000 annual exemption. That exemption was abolished from fiscal year 2025: every euro of realized gain is now taxable. From 1 January 2026, the rate rises to 33% under the 2026 Budget Law, following parliament’s rejection of a proposed 42% increase. Euro-denominated electronic money tokens (EMTs) issued under MiCA retain the 26% rate. An optional 18% mark-to-market election allows taxpayers to reset cost basis on the full portfolio as of 1 January.

Mining rewards, staking yields, airdrops, and DeFi income are classified as “proventi da cripto-attività” and taxed at 33% from 2026, not at progressive IRPEF rates of 23% to 43%. Corporate entities pay IRES at 24% plus IRAP at 3.9%. Italian residents holding crypto on foreign platforms must declare holdings on Form RW and may owe the IVAFE wealth tax at 0.2% of market value as of 31 December. Tax filings use Modello Redditi PF (Form RT for capital gains; Form RW for foreign assets). From 2026, the DAC8 directive and OECD CARF framework mandate automatic cross-border exchange of crypto-holder data between tax authorities.

Regulatory Oversight

Italy operates a multi-authority model under MiCA and Legislative Decree 129/2024.

CONSOB (Commissione Nazionale per le Societa e la Borsa) is the lead authority for CASP authorization, in consultation with Banca d’Italia. CONSOB oversees market abuse, public offering rules for crypto-assets other than ARTs and EMTs, and investor protection. Application review runs 25 working days (completeness) plus 40 working days (qualitative assessment); the application fee is EUR 20,000.

Banca d’Italia (Bank of Italy) exercises prudential supervision over CASPs and is the competent authority for asset-referenced tokens (ARTs) and e-money tokens (EMTs). The central bank operates the FinTech Hub, FinTech Channel, and Milano Hub innovation center.

OAM (Organismo Agenti e Mediatori) administered the pre-MiCA VASP register (15-day enrollment). OAM-registered VASPs continue their AML reporting obligations during the transitional period while seeking CASP authorization.

UIF (Unita di Informazione Finanziaria per l’Italia), within Banca d’Italia, is Italy’s Financial Intelligence Unit. It receives and analyzes suspicious transaction reports from crypto operators and published Quaderno N. 31 (2025), a dedicated analysis of crypto money-laundering risk and detection indicators.

Agenzia delle Entrate handles tax administration and reporting enforcement for crypto-assets.

Business Environment

Banking Relationships

Italian banks have grown more open to crypto and blockchain in recent years, driven partly by regulatory clarity and partly by client demand. The Spunta Banca DLT initiative, promoted by the Italian Banking Association (ABI), implemented blockchain technology for interbank reconciliation: over one hundred Italian banks now operate the distributed ledger daily.

Traditional retail offerings of crypto-related services to clients remain more limited compared to some other EU jurisdictions. Banca Generali has offered Bitcoin custody through a partnership with Italian crypto firm Conio. The MiCA passporting mechanism, which allows a CASP authorized in one EU member state to operate across all 27, is expected to encourage broader bank engagement as the framework matures.

Crypto businesses operating in Italy must comply with AML regulations and either hold OAM registration (transitional period) or full CASP authorization before establishing commercial banking relationships. Compliance with Know Your Customer (KYC) requirements and quarterly OAM reporting are standard prerequisites.

Innovation Support

Italy has built several formal frameworks for fintech and blockchain innovation. The FinTech Sandbox Programme, established by MEF Decree 100/2021, offers supervised firms and fintech operators up to 18 months to test innovative products in banking, financial, and insurance sectors under regulatory oversight.

The Bank of Italy runs the FinTech Hub for technology project development and the FinTech Channel as a structured contact point for market participants. The Milano Hub serves as a broader innovation center for the digital evolution of financial markets.

Italy was among the first EU member states to adapt its legal system to the EU DLT Pilot Regime Regulation through Law Decree No. 25 of March 2023 (the Fintech Decree). This enabled issuance and circulation of financial instruments in digital form using distributed ledger technology, resulting in Italy’s first blockchain-based digital bond issued under the new framework.

The government also provides tax incentives for investment in innovative startups and has included blockchain among strategic sectors subject to foreign direct investment screening under the “Golden Power” rules.

Crypto License in Italy

Italy has moved from a light-touch VASP registration regime to the comprehensive CASP authorization framework under MiCA Regulation (EU) 2023/1114 and Legislative Decree 129/2024. Under the former regime, VASPs could begin operations within approximately 15 days of enrolling with the OAM. The current regime requires full authorization from CONSOB, which is the lead licensing authority for most CASPs in consultation with Banca d’Italia; Banca d’Italia leads for EMT-issuing institutions and payment institutions. The transitional period extended by Law Decree 95/2025 runs until 30 June 2026, giving OAM-registered providers time to complete the transition without operational gaps.

Licensing Requirements

Firms seeking a CASP license must apply to CONSOB under MiCA Article 63 and Legislative Decree 129/2024. Core requirements cover governance, minimum capital adequacy, operational resilience, consumer protection, and conduct-of-business standards. The application fee is EUR 20,000. Banks, investment firms, and other already-regulated entities adding crypto services submit a notification to CONSOB or Banca d’Italia rather than a full authorization application.

VASPs registered with the OAM on or before 27 December 2024 may continue operating under the transitional regime while seeking CASP authorization. Law Decree 95/2025 (effective 1 July 2025) extended the application deadline to 30 December 2025 and the operational deadline to 30 June 2026. Firms not submitting an application by December 2025, or whose application is denied, must cease Italian operations and return client assets within 60 days of denial.

Authorized Activities

MiCA defines eight categories of authorized crypto-asset services: operating a trading platform; exchange for fiat or other crypto-assets; execution of orders; placing without a firm commitment; reception and transmission of orders; portfolio management; advice; and safekeeping and administration. A CASP authorized in Italy may passport services across all 27 EU member states by notifying CONSOB and the host state regulator.

Stablecoin issuers face separate requirements. EMT issuers are authorized by Banca d’Italia; ART issuers require Banca d’Italia authorization in consultation with CONSOB, with specific reserve and redemption obligations under MiCA Titles III and IV.

Application Process and Timeline

CONSOB offers a pre-filing engagement channel for firms to clarify documentation requirements before formal submission. Operational guidance is published on consob.it. After a complete application is received, the 40-working-day qualitative assessment runs with Banca d’Italia consultation; total review is approximately 13 weeks. CONSOB has warned that late-filed applications risk not receiving authorization before the 30 June 2026 operational cutoff, urging firms to file well ahead of the 30 December 2025 deadline.

Market Characteristics

Adoption Patterns

Italy has seen rapid growth in retail crypto ownership. CONSOB data from July 2024 showed 18% of Italians held crypto-assets, up from 8% in 2022, placing Italy among the more active EU markets. Notably, 34% of Italian crypto investors are women, one of the highest gender-balance ratios in Europe. Most retail investors hold less than EUR 5,000, treating crypto as a speculative asset rather than a payment method. Volatility and fraud risk remain the main barriers cited by non-participants.

Institutional adoption is developing alongside regulatory clarity. Banking groups are launching fintech subsidiaries and entering cooperation agreements with established crypto operators. Full MiCA implementation is expected to accelerate institutional participation through 2025 and 2026.

Industry Focus

Italy’s crypto sector reflects the country’s industrial strengths. Italian SMEs have adopted blockchain for supply chain traceability and quality certification in fashion, food, and manufacturing. Security token offerings and asset tokenization are growing, supported by the Fintech Decree (Law Decree 25/2023) and the EU DLT Pilot Regime; Italy’s first blockchain-based digital bond was issued under this framework.

Over 150 providers are registered on the OAM VASP list, including Binance, Coinbase, and Italian-founded firms. Young Platform (Turin) is among the leading domestic retail exchanges. Conio (Milan) partners with Banca Generali for Bitcoin custody and participates in the Bank of Italy’s Euro Token innovation project. The insurance sector has engaged with DLT through surety and guarantee projects backed by Banca d’Italia and IVASS.

Regulatory Evolution

Italy’s regulatory path has moved from early tax guidance and AML-only VASP registration to a comprehensive MiCA-aligned framework in under a decade. The journey progressed through ministerial resolutions on tax treatment, the OAM VASP register established by MEF Decree 13 January 2022, and the transposition of MiCA via Legislative Decree 129/2024.

As an EU member state, Italy’s trajectory is anchored to the European framework. MiCA passporting gives Italian-authorized CASPs access to the entire EU single market. ESMA has published classification guidelines that CONSOB has adopted, providing additional certainty on which crypto-assets fall under MiCA versus existing securities law.

Italy has made several policy choices that represent stricter implementations of MiCA’s optional provisions: a shortened transitional period, higher early filing urgency, and a EUR 20,000 application fee. These reflect a deliberate effort to align the Italian market with EU standards quickly rather than extending the lighter-touch VASP era.

Ongoing focus areas include DeFi governance, stablecoin reserve requirements, and the intersection of tokenized financial instruments with existing securities regulation. The EU’s new Anti-Money Laundering Authority (AMLA), which begins direct supervision of highest-risk CASPs from 1 January 2028, will add another layer of European oversight to Italy’s domestic enforcement architecture led by UIF, CONSOB, and Banca d’Italia.